Türk Hava Yollari Anonim Ortakligi (THYAO) Q3 2025 earnings summary

Executive summary

• Third quarter saw robust demand in Asia and Africa, record passenger numbers, and continued network expansion, with passenger capacity up 8% year-over-year and surpassing 2019 levels by 43%.

• Major aircraft orders placed for Boeing 787s and 737 MAXs, supporting a new generation fleet by 2035 and 6% annual capacity growth target.

• Strategic minority investment in Air Europa to strengthen connectivity between Europe, Türkiye, Spain, and Latin America.

• Multiple international awards received for service quality, sustainability, and innovative financing.

• Revenue for the nine months ended 30 September 2025 reached $17,820 million, up from $17,060 million year-over-year, with net profit at $2,025 million compared to $2,712 million in the prior period.

Financial highlights

• Q3 total revenues up 5% year-over-year to nearly $7 billion; passenger revenues rose 6%, cargo revenues declined 7% to $850 million.

• EBITDA at almost $2.1 billion (29.6% margin); net income close to $1.4 billion, down 10.7% year-over-year.

• Profit from main operations declined 21% to $1.1 billion; EBITDAR margin dropped to 29.6% from 35.2% year-over-year.

• Free cash flow for Q3 at $350 million; 12-month cumulative free cash flow reached $1.6 billion.

• Cash and cash equivalents at period end were $2,417 million, down from $2,721 million at year-end 2024.

Outlook and guidance

• Revenue growth guidance for 2025 revised down by 1 percentage point to 5%-6% due to North America softness; EBITDAR margin guidance is 22%-24%.

• Capacity growth expected at 7%-8% in 2025 and 9% in 2026; over 91 million passengers targeted.

• Ex-fuel unit cost increase expected to moderate to mid-single digits in 2025.

• Fleet to reach 525-530 aircraft by year-end 2025.

• Net debt/EBITDA projected at 1.6x-1.8x for 2025.